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Burry Slams OpenAI: "Next Netscape"
9 Dec
Summary
- Michael Burry warned OpenAI resembles Netscape, a dot-com era failure.
- He questioned OpenAI's funding, stating it needs billions to stay afloat.
- Burry defended his past bearish market calls against critics.
Investor Michael Burry has resurfaced on social media platform X to defend his bearish market outlook and criticize major tech players, particularly OpenAI. He controversially likened the artificial intelligence company to Netscape, a prominent casualty of the dot-com bubble, citing its significant cash burn and questioning its ongoing funding rounds.
Burry suggested that Microsoft is attempting to manage OpenAI off its balance sheet while extracting intellectual property. He asserted that the company's substantial funding needs are far from being met, even with significant capital infusions, and implied the entire industry requires a massive IPO to stabilize.
Amidst these critiques, Burry also addressed his detractors, sharing past predictions regarding meme stocks, inflation, and the regional banking crisis as evidence of his foresight. He argued that short-sellers are not expected to maintain positions for extended periods, dismissing criticism of his historical calls as shortsighted.
